Cyprus Non-Dom Regime
Why Cyprus continues to be one of Europe’s most attractive jurisdictions for internationally mobile individuals
For individuals looking to relocate, structure international investments or establish tax residence in a stable European jurisdiction, Cyprus continues to offer one of the most attractive tax regimes available.
At the centre of this offering is the Cyprus Non-Dom Regime, which combines an internationally competitive tax system with EU membership, an extensive double tax treaty network, a high quality of life and a straightforward tax residency framework.
Whether you are an entrepreneur, investor, company owner, executive or retiree, Cyprus can offer significant tax efficiencies while providing a secure and well-regulated environment from which to live and conduct business.
What is the Cyprus Non-Dom Regime?
The Cyprus Non-Dom Regime applies to individuals who become Cyprus tax residents but are not considered domiciled in Cyprus under the relevant legislation.
Qualifying individuals benefit from a number of valuable tax advantages, most notably exemptions from the Cyprus Special Defence Contribution (SDC) on certain types of passive income.
The regime was introduced to attract international talent, entrepreneurs and investment into Cyprus and has become one of the country’s most successful tax incentives.
Key Benefits
Subject to meeting the relevant conditions, a Cyprus tax resident who qualifies as non-domiciled can benefit from:
- Exemption from Cyprus Special Defence Contribution (SDC) on dividend income.
- Exemption from Cyprus Special Defence Contribution (SDC) on interest income.
- Access to one of the European Union’s most competitive tax systems.
- No inheritance tax in Cyprus.
- No wealth tax in Cyprus.
- No tax on gains arising from the disposal of qualifying securities, subject to applicable legislation.
- Access to Cyprus’ extensive network of double tax treaties.
These benefits can make Cyprus particularly attractive for shareholders, investors and internationally mobile business owners who receive investment income from around the world.
Becoming a Cyprus Tax Resident
An individual may become tax resident in Cyprus under either:
- the 183-day rule, or
- the 60-day rule, provided the relevant statutory conditions are satisfied.
The 60-day rule offers considerable flexibility for internationally mobile individuals who maintain genuine economic ties with Cyprus while spending significant time travelling or working internationally.
How Long Does Non-Dom Status Last?
In general, qualifying individuals may benefit from the Cyprus Non-Dom Regime for up to 17 years from the year they first become Cyprus tax resident.
Recent legislative changes have also introduced an optional mechanism allowing certain individuals to extend the benefits of the regime beyond this period, subject to specific eligibility requirements and conditions.
Why Cyprus?
Beyond the tax advantages, Cyprus offers a compelling overall proposition:
- Member State of the European Union.
- Common law legal system.
- English widely spoken in business.
- Strategic location connecting Europe, the Middle East and Africa.
- Modern banking and professional services sector.
- High standard of living with a favourable Mediterranean climate.
These factors have made Cyprus an increasingly popular destination for entrepreneurs, business owners, executives and families seeking a long-term base within Europe.
How We Can Help
Every individual’s circumstances are different, and obtaining the full benefits of the Cyprus Non-Dom Regime requires careful planning and proper implementation.
At Cosmoserve, we assist clients throughout the entire relocation process, including:
- Assessing eligibility for Cyprus tax residency and non-dom status.
- Structuring international tax affairs.
- Company formation and ongoing corporate services.
- Personal and corporate tax compliance.
- Immigration and relocation support.
- Ongoing accounting, payroll and advisory services.
If you are considering relocating to Cyprus or would like to understand whether the Cyprus Non-Dom Regime could benefit you, our team would be pleased to assist.
The contents of this publication should be considered to be of a general nature only not referring to any particular business. Before proceeding with any action, please request further advice relating specifically to your business. We will be very pleased to be of assistance.
